Bond pricing & yield worksheet with answers

Free printable Bond pricing & yield worksheet: 6 problems from easy to exam level, with an answer key. Print it or save it as a PDF.

New worksheet Practise online with hints

For teachers: free to print, copy and use in class. Every new worksheet has new values and its own answer key. A link to ExamProblems on your course page is appreciated.

Name: ____________________ Date: ____________

1.Easy

A bond with a face value of €1 000 pays an annual coupon of 5% and matures in 7 years. The yield to maturity is 2.5%. Find the price P of the bond.

F = €1 000coupon = 5%YTM = 2.5%n = 7

P = €

2.Easy

A bond with a face value of €1 000 pays an annual coupon of 3% and trades at €990. Find its current yield CY in percent.

F = €1 000coupon = 3%P = €990

CY = %

3.Medium

A bond with a face value of €1 000 matures in 11 years and pays annual coupons. It sells for €1 044 when the yield to maturity is 4%. Find the coupon rate c in percent.

F = €1 000n = 11P = €1 044YTM = 4%

c = %

4.Medium

A bond with a face value of €1 000 matures in 9 years and pays annual coupons. It sells for €640 when the yield to maturity is 9%. Find the coupon rate c in percent.

F = €1 000n = 9P = €640YTM = 9%

c = %

5.Hard

A bond with a face value of €1 000 and an annual coupon of 5% matures in 10 years and sells for €830. Find its yield to maturity YTM in percent.

F = €1 000coupon = 5%n = 10P = €830

YTM = %

6.Hard

A bond with a face value of €1 000 and an annual coupon of 4% matures in 3 years and sells for €945. Find its yield to maturity YTM in percent.

F = €1 000coupon = 4%n = 3P = €945

YTM = %

Answer key

1. P = 1159 €
2. CY = 3.03 %
3. c = 4.502 %
4. c = 2.995 %
5. YTM = 7.474 %
6. YTM = 6.06 %

Full step-by-step solutions: practise this topic on examproblems.com.